Why doesn't income protection replace all my salary?
Income protection
The short answer
Insurers limit benefit to a proportion of your earnings, commonly around 50% to 65% of gross pay, so you are not better off financially when unable to work. Benefit from a personal policy is usually paid tax-free, so the amount can be close to your normal take-home pay.
Other income
Some policies reduce benefit if you also receive sick pay or payments from other policies.
Check your budget
Compare the benefit with your essential monthly outgoings.
Keeping it current
If your pay rises, ask whether you can increase your cover.
Sources
This article is general information about UK protection insurance, not personalised financial advice. Policy terms vary between insurers and products, so always check your own policy documents.
Last updated 27 October 2026